EY: Risks stay for UK hospitality sector

Fears for future of UK travel agents

UK-listed journey, hospitality and leisure firms issued 90 per cent fewer revenue warnings through the first three months of 2021 than they did through the equal interval in 2020.

Nevertheless, these firms proceed to face a difficult outlook, in keeping with the most recent EY-Parthenon evaluation of revenue warnings.

Between January and March this yr, FTSE Journey and Leisure firms, which incorporates eating places and bars, recorded solely 5 revenue warnings, issued by eight per cent of the sector.

This compares with the document 50 issued within the equal quarter in 2020, when the pandemic started.

Additionally it is a lower on the 11 revenue warnings issued within the earlier quarter, between October and December final yr.

Christian Mole, EY UK & Eire head of hospitality and leisure, commented: “The hospitality sector has clearly been some of the affected by restrictions on social contact, with nearly 4 in 5 UK FTSE Journey and Leisure firms having issued a revenue warning for the reason that begin of 2020.

“However restrictions are easing, and the financial outlook is enhancing.

“Customers have responded to outside hospitality very positively, demonstrating that there’s important pent-up client demand.

“Nevertheless, attributable to a scarcity of appropriate exterior house, solely a comparatively small proportion of websites have been capable of open, and the total reopening of the sector on Might seventeenth will seemingly show an even bigger take a look at of the stability between provide and demand.”

Regardless of the lower in warnings, FTSE journey and leisure continues to be the sector with the second highest variety of revenue warnings in quarter one among 2021, behind solely FTSE retailers which issued eight revenue warnings.

Most FTSE sectors noticed important decreases in revenue warning numbers at the beginning of 2021 as the worldwide vaccines roll out, and the teachings learnt in earlier lockdowns, led to improved forecasts.

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